Croatia plans to issue EUR 783mn worth of kuna bonds on Feb 10

By bne IntelliNews February 5, 2014

The Croatian finance ministry plans to issue HRK 6.0bn (EUR 783mn) worth of kuna bonds on Feb 10 in order to refinance the repayment of a EUR 650mn bond, which matures on the same day, business portal Banka.hr quoted analysts from Zagreb-based Raiffeisenbank Austria (RBA) as saying.

The amount of the planned issue could up by HRK 0.5-1.0bn, depending of the demand, according to RBA.

In order to collect the funding, the ministry is expected to reopen the bonds maturing in 2019 (third reopening) and 2024 (second reopening). According to a report of daily Poslovni Dnevnik, the current market price of the Croatian debts with comparable maturity indicate the 10-year bonds are expected to yield about 5.7-5.8%, while the five-year bonds are seen yielding some 5%.

The booking for the bonds will open at 12pm local time on Feb 5, Banka.hr said.

According to the 2014 budget bill, the country plans revenues of HRK 26.4bn from issuing government debt. Out of the total amount, HRK 1.65bn are planned from issuing T-bills (on the domestic market) and HRK 24.76bn from issuing bonds at domestic market and abroad.

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